Uber beats on Q2 revenue, gross bookings; launches $20B stock buyback

Ride-hailing giant Uber’s (UBER) second quarter revenue topped estimates, with strong current-quarter guidance. The company announced a monster $20 billion stock buyback to boot.

Uber reported Q2 revenue grew 18% year over year to $12.65 billion vs. $12.48 billion estimated. Uber posted earnings per share of $0.63 vs. $0.63 estimated, with adjusted EBITDA coming in at $2.12 billion vs. $2.09 billion estimated, up 35%.

In addition, confidence in Uber’s ride-hailing and delivery business led to the company announcing a $20 billion stock buyback.

Despite the good report, Uber stock was down in early trade, as the stock had a steep run-up thus far, up nearly 50% year to date.

Read more: Live coverage of corporate earnings

“Today’s announcement of a new $20 billion share repurchase authorization underscores our confidence in the business, following yet another quarter of strong top and bottom-line performance,” Uber CFO Prashanth Mahendra-Rajah said in a statement. “Our trailing twelve month free cash flow hit a new all-time high of $8.5 billion and we remain committed to driving durable, profitable growth.”

Despite the results and buyback announcement, Uber stock wavered in premarket trading.

Other metrics were strong as well in Uber’s second quarter. Monthly active platform consumers (MAPCs) hit 180 million, up 15% year over year and topping estimates. Gross bookings jumped 17% to $46.76 billion, also better than expected.

“We believe UBER’s platform integration strategy is delivering exceptional results, with cross-platform consumers generating over 3x the Gross Bookings of single-business users, yet fewer than 20% of eligible consumers use both services, indicating substantial untapped potential,” Shreya Gheewala, CFRA Research analyst, wrote in a note to investors.

In terms of guidance, Uber sees Q3 gross bookings in a range of $48.25 billion to $49.75 billion vs. $47.58 billion estimated, with adjusted EBITDA of $2.19 billion to $2.29 billion compared to $8.53 billion expected.

“Our platform strategy is working, with record audience, frequency, and profitability across Mobility and Delivery,” CEO Dara Khosrowshahi said in a statement. “But we’re still only beginning to unlock the platform’s full potential, now with 20 autonomous partners around the world.”

Uber announced in the quarter that it would launch ride-hailing preferences where women could request women-only drivers in some cities. Uber also said it would begin testing a robotaxi program next year with autonomous software company Nuru.